Consumer prices in Canada unexpectedly declined in August 2016

Consumer prices in Canada unexpectedly declined in August 2016. The CPI decreased by 0.2% MoM against expectations for growth of 0.1%. In July, the inflation was negative and amounted to -0.2%. On year-on-year basis, the inflation slowed to 1.1% after the value in July was 1.3% and far below the market expectations for a 1.4% yoy.

The core inflation in Canada , which excludes volatile prices of food and energy, remains zero compared to the previous month, while the market had expected growth of 0.2%. In July, consumer prices did not report increases.

The year-on-year core inflation slowed from 2.1% in July to 1.8% in August, below expectations for growth of 2%.